Hexagon Nutrition Gets SEBI Approval For Rs 600 Crore IPO

In the latest development, Hexagon Nutrition got the Securities and Exchange Board of India (SEBI) Approval for the Initial Public Offering (IPO) to float Rs 600 crores.

In December 2021, the business submitted a draft prospectus. According to the draught red herring prospectus (DRHP), the company's public offering would consist of fresh issuance of equity shares worth Rs 100 crore and an offer for sale (OFS) of up to 30,113,918 equity shares.

The OFS includes up to 7,700,000 equity shares from Arun Purushottam Kelkar, 6,136,000 equity shares from Subhash Purushottam Kelkar (the promoter selling shareholders), 1,500,000 equity shares from Anuradha Arun Kelkar, 2,500,000 equity shares from Nutan Subhash Kelkar, 12,204,250 equity shares from Somerset Indus Healthcare Fund I, and 73,668 equity shares from Mayur Sirdesai.
According to market sources, the issue size will be in the range of Rs 500-600 crore.

Proceeds from the issue will be used to pay down debt, cover additional working capital requirements, support capital expenditure for extending an existing facility, invest in a subsidiary, and finance capital expenditure at the current facility, as well as for general business objectives.

The issue's book-running lead managers are Equirus Capital and SBI Capital Markets, according to the release.

About - Hexagon Nutrition

Hexagon Nutrition, based in Mumbai, is a fully integrated company that specializes in product development and marketing, as well as research and development and nutrition manufacturing.

Hexagon Nutrition, founded in 1993 by Arun and Subash Kelkar, began as a micronutrient formulations player and has now progressed up the value chain to establish brands like Pentasure, Obesigo, and Pediagold, which are major names in the health, wellness, and clinical nutrition arena.

Somerset Indus Healthcare Fund-I, an offshore private equity fund, and Mayur Anand Sardesai, an adviser, and director at Somerset Health Capital Advisors, invested Rs 25 crore for a 10% investment in the company in 2016. Somerset is a private equity business based in the United Kingdom that focuses on healthcare projects in India.